The Polish Financial Supervision Authority takes the decision to suspend bank’s operations if:
- the assets of the bank are insufficient to cover its liabilities – according to a balance sheet statement compiled at the end of the reporting period
or
- for the reasons directly related to the financial standing of the bank, it fails to meet its liabilities with respect to depositors within the scope of deposit guarantee limits.
The Polish Financial Supervision Authority takes the decision to suspend the bank’s operations and appoint receivership, unless it had already been appointed beforehand, and at the same time the Polish Financial Supervision Authority, and at that time:
- decides on a takeover of the failed bank by another bank, with the consent of the acquiring bank,
or
- files a petition to declare bankruptcy of a bank at a relevant court. In the latter case, the fulfilment of the guarantee condition and disbursement of guaranteed funds takes place.
In the case of a cooperative savings and credit union, the Polish Financial Supervision Authority may also decide to suspend the operations of a credit union if, according to a balance sheet compiled at the end of the reporting period, the assets of the credit union are insufficient to meet its liabilities. The Polish Financial Supervision Authority may also take a decision to suspend operations of a credit union if for reasons directly associated with its financial standing it fails to meet its liabilities to depositors regarding covered deposits. In both cases, fulfilment of the guarantee condition takes place.
